TL;DR: Risk violations occur when no Stop Loss is placed at all (No SL Trade), when a single trade exceeds the maximum allowable risk (High Risk), or when multiple open trades together exceed the total cumulative risk limit (At-a-Time High Risk).
This guide provides technical explanations for common trade violations. Understanding these terms will help you ensure your trading activity remains compliant with our guidelines.
This guide provides technical explanations for common trade violations. Understanding these terms will help you ensure your trading activity remains compliant with our guidelines.
What is a "No SL Trade"?
This indicates that a trade was executed and closed without ever having a Stop Loss order in place. FundedNext requires a Stop Loss to be placed on every trade. Trades that run and close without one are flagged under this violation type.
How is "High Risk" defined for an individual trade?
A trade is flagged as "High Risk" if its individual risk exposure exceeds the maximum allowable risk limit established in the trading rules. The risk on each trade is calculated against the initial account balance based on Stop Loss placement and the maximum potential loss on that trade.
What does "At-a-Time High Risk" mean?
While individual trades might stay within permitted risk limits, this violation occurs when the combined risk exposure of all open trades at the same time exceeds the maximum cumulative risk threshold. FundedNext evaluates total risk across all open positions simultaneously, not per trade in isolation.